Weekly Market Commentary

Nepse ends week with 100-point gain

Published On: January 8, 2021 07:50 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Jan 8: The equity market opened this week’s trading with considerable strength as the Nepse index shot up by 88.11 points on Sunday. The benchmark fell marginally on Monday and Tuesday’s trading with declines of 6.35 and 3.54 points, respectively. Stocks, nonetheless, recouped mid-week losses in the latter trading sessions of the week. The broad index rose 13.07 points on Wednesday with further advance of 15.91 points on Thursday. The equity market closed at 2,194.49 with a weekly gain tally of 107.21 points or 5.14%.

With the week’s gain, the equity index stretched its winning streak for four consecutive weeks. The equity market has continued to see notable charm as interest rates in the economy are faltering gradually. Consequently, the stock market has seen a significant influx of funds in the recent months. Weekly turnover improved to Rs. 27 billion compared to Rs. 23 billion in the week earlier.

Sensitive index rose 5.65% as Class ‘A’ stocks also saw considerable strength. All sectors ended the week in positive territory. Trading sector led the broader market. The group’s sub-index shot up 7.08%. ‘Others’ and Non-Life Insurance segments, subsequently, rallied over 6%. Hydropower, Manufacturing & Processing and Microfinance sub-indices rallied over 5% each. All other segments registered decent weekly gains.

On the turnover front, Nepal Life Insurance company Ltd was the most heavily traded stock of the week on review. Rs. 1.62 billion worth of the life insurer scrip changed hands. Nepal Reinsurance Company Ltd, Shikhar Insurance Company Ltd and Nepal Telecom Ltd followed suit with transactions of Rs. 1.44 billion, Rs. 1.38 billion and Rs. 1.27 billion. NIC Asia Bank Ltd, Prabhu Bank Ltd and Prime Commercial Bank Ltd were among other active stocks.

This week 20 million unit IPO shares of Prabhu Life Insurance Ltd were listed in the exchange. The scrip opened trading at RS. 137 per share and rose to Rs. 190 per share by the end of the week.

In terms of ARKS technical analysis, the market formed a strong bullish candlestick following a breakout above 2,100 level. Momentum indicators suggest that the equity market has more room for upside movement. Market participation has also improved which substantiates the advance further. While some correction or consolidation around current level can be expected, the overall uptrend will likely stretch into the coming months. 

This column is produced by ARKS Capital Advisors Ltd.


(Views expressed in the article are those of the producer and do not necessarily reflect those of thispublication)

Leave A Comment